If a Company Reports a Net Loss, It

question 29

Multiple Choice

If a company reports a net loss, it:

• A) cannot pay cash dividends.
• B) cannot obtain a loan.
• C) cannot purchase property.
• D) may still have an increase in cash.

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Definitions:

Fixed Assets Management

Fixed assets management involves the accounting and management practices related to the selection, maintenance, inspection, and disposal of fixed assets to maximize their efficiency and value to the business.

Cash Conversion

The process of turning physical goods, services, or other assets into cash, often measuring the efficiency of a company in generating revenue.

Credit Policies

Guidelines set by businesses to determine the terms and conditions for extending credit to customers.

Working Capital Policy

A strategy relating to managing a firm's short-term assets and liabilities with the objective of maintaining sufficient liquidity to carry out operations smoothly.